Salary Transparency Laws

    Salary Transparency Laws are slated to go into effect in New York City and California, and other states and jurisdictions may soon follow. In New York, the “Salary Transparency Law,” a recent amendment to the New York City Human Rights Law (NYCHRL), is set to go into effect on November 1, 2022. Employers advertising jobs in New York City must include a good faith salary range for every job, promotion, and transfer opportunity advertised. Employers with four (4) or more employees or one (1) or more domestic workers are covered under the Salary Transparency Law so long as at least one of those employees works in New York City.

    Employers must state the minimum and maximum salary that they in good faith believe at the time of the posting they are willing to pay for the advertised job, promotion, or transfer opportunity. Under this Act, “salary” includes the base annual or hourly rate of pay, but does not include other forms of compensation. The salary range must not be open-ended (e.g., $20 per hour and up or maximum of $60,000 per year).

    California’s legislature has also passed a bill that would impose significant new requirements on employers in that state. Governor Gavin Newsom has until September 30, 2022, to sign it, veto it, or allow it to pass into law. Under the bill, employers with 15 or more employees would have to include pay range in all of their job postings and publicly report how much certain groups of employees are paid.

    “Not only does the bill require employers to report wages for employees across race, gender and position in the company, it also proposes to publish each employer’s information on the Internet,” said Anthony Zaller, an attorney with Zaller Law Group in El Segundo, CA.

    For more information, please refer to the NYC Salary Transparency Fact Sheet or Contact a FosterThomas Advisor.